WWYD Invoice one

[Tantrumschmantrum]

I'm new to freelancing and have made a bit of a blunder. I did some work for a public business and I invoiced them thinking I needed to add VAT.

They emailed me to say how much they were going to pay me and it didn't include VAT. I showed it to my business savvy friend who said they were right as I'm not VAT registered and they'd probably worked that out on my behalf. I emailed them back to say Thanks and all good. Then I got another email saying they were going to pay me the amount including VAT. Should I fess up and pay back the extra? Its not much, but don't want to get into trouble Help

[AlexanderHamilton]

If they are a VAT registered business & they try to reclaim the VAT then this will probably get picked up by their accountant or HMRC.

What made you think you could add VAT in the first place?

[MammaH2018]

Be honest - if your not VAT registered then you cannot add the VAT onto an invoice for payment. You can actually get into a bit of bother with the tax man if you do try this so don’t even bother!!!!

[NC4Now]

Just email them and tell them.
‘Apologies, due to an admin error this has been incorrectly charged to include VAT. Amended invoice attached.’

[Tantrumschmantrum]

Alexander it wasn't done intentionally, just a novice at it. When we get work in from similar companies they always stick VAT on them so assumed wrongly it was the norm. I need to do a business course for dummies!

[Eatsleepworkrepeat]

Hmrc do some great webinars in issues like this, I'd highly recommend them. Definitely pay back the VAT/ reissue invoice to clarify, it isn't as simple as being a bit overpaid as other posters have explained, they will claim it back and the paper trail won't add up.

[thisartist]

Well done you for being so honest. I'd probably fess up.

Well done on the first job btw

Sam

[Tantrumschmantrum]

Thanks thisartist!

So I fessed up. They were really nice about it and said all would be fine if I paid back the VAT. Only now wondering if I should ask them for some sort of acknowledgement of the payback so I have evidence if the taxman should come calling? What would you ask for?

[Avasarala]

@Tantrumschmantrum

Get yourself online and educate yourself about your taxes. Do you know how to record tour expenses (and what counts as an expense). You can't just start a business and learn as you go because you can get into bother with these things.

Just write up a confirmation of refund and add it to your files along with the corresponding bank statement showing the refund. That should cover you.